What you need to know – EU audit reform

27 May 2014

EU legislation to reform the statutory audit market was adopted in April 2014. The laws will apply from mid-June 2016 – with the exception of mandatory firm rotation, which is subject to transition arrangements.

The legislation – composed of a directive and a regulation - means that mandatory rotation of statutory audit firms will be introduced into the EU on a 10 yearly basis for all public interest entities. There will also be additional restrictions on the non-audit services that audit firms can provide to their audit clients.